Rbs Case Study

RBS Case

Problem Statement: The problem addressed in this case study is the question of what marketing mix to use to increase Reliance Baking Soda’s (RBS) profit by 10% in 2008.
The marketing mix solution must evaluate the effectiveness of consumer and trade promotions and also address the complex interaction between them.

Situation Analysis:

To help evaluate the value creating opportunities for RBS the

following analysis were conducted: Strength, Weakness, Opportunity, and Threats
(SWOT – Exhibit 1); and Porter’s 5 force analysis (Exhibit 2).

As seen in the SWOT analysis, the biggest asset for RBS is its loyal customer base and historically strong brand awareness leading to a strong market share (70% for RBS).
This translates to a high supplier power for Reliance. Advertising baking soda as an allpurpose cleaner to its established customer base is a good avenue for Regnante to achieve the 10% profit goal. For a historically cheap product, a large customer base with frequent purchases to allow for multiple usages is extremely important to help the product’s entry into different areas of the house.

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RBS Case Analysis continued
However with low barriers of entry for baking soda, threat of competition from lower priced private labels, and moderate to high buyer power due to excessive reliance on trade promotions, Reliance should also focus on a gradual and incremental change on this dependence, so as not to alienate its channel partners and the sales forces who are dependent on bonuses directly linked to the quota they sell.

With a focus on growth and the proposed two-pronged approach: increase adverting to the customer base directly and reduce dependence on volume sales through trade promotions, the following segmentation is proposed:
Segment 1

Segment 2

Segment 3

Attributes

Women with families

Singles

Seniors

Needs

Time with the family

Networking

Value

Easy access to product

Store